Twitter announces its $1 billion initial public offering

Twitter logoTwitter filed an S-1 form with the Security and Exchange Commission on Thursday, officially providing more details about its intent to take itself public, offering up 472,613,753 shares of stock in order to raise $1 billion.

The initial public offering marks the first time that Twitter has been required to make much of its financial data public, and it shows a company that is growing its revenue but still hasn't quite turned a profit.

The SEC filing says that Twitter has 218 million monthly active users, up from 200 million in December 2012. The company also says it has seen a 198 percent growth in year-over-year revenue, bringing in $316.9 million in 2012, and a 38 percent decrease in net loss to $79.4 million. For the first half of 2013, the company brought in $253.6 million in revenue and its net loss was tallied at $69.3 million.

AllThingsD reminds us that expectations for Twitter's revenues “were pegged at just about $600 million this year and close to $300 million last year.”

So Twitter's IPO will be small, at least compared to Facebook's recent IPO, in which the company said it expected to raise $13 billion on 337,415,352 shares of stock. But Facebook's shares stumbled quite a bit when the company finally got out on the track, with some investors claiming that the company had been overvalued. It has only relatively recently found its footing.

In the company's "Risk Factors" section, Twitter says that going forward, its profitability is dependent on growing its user base.

"To the extent our user growth rate slows, our success will become increasingly dependent on our ability to increase levels of user engagement and ad engagement on Twitter. We generate a substantial majority of our revenue based upon engagement by our users with the ads that we display," the company wrote in its S-1.

TWTR shares are expected to begin trading in November.

Source: Ars Technica

Tags: Twitter

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